November 2011 Sales Statistics

As the year end approaches

Where is real estate on Maui headed?

Distressed properties have dragged the real estate market down just about everywhere.  If you follow this newsletter, you know that Maui is no exception.  Many properties lost 50% of their value or more since the go-go times of ’05 and ’06.  Distressed properties currently account for more than 21% of Maui’s listings of condos and single family, and we know there are many more lurking in the “shadow inventory”.

Yet there are plenty of indications of stability as the year draws to a close. Home sales and prices, although up and down month to month, seem to have settled down. While the median price is down compared to last year, the median in Kapalua, Kaanapali and Wailea are all up.

Condo sales shot up at the beginning of the year, but came crashing back down after March.  However, in the last couple of months, they seemed to have leveled off as well. 

Next month we’ll give you the year in review.  In the meantime, enjoy family and friends over the holidays and Hau'oli Makahiki Hou.

Are there signs of stability?

Or will we see another decline next month?

There were 77 condos sold on Maui in November – virtually the same number that sold in October.  This is the first sign of stabilization of sales since March of this year.  The median selling prices have zigzagged up and down since the beginning of the year when the median selling price was $295,000 compared to $265,000 in November. Distressed properties (short sales and foreclosures) represented 35% of the sold properties in November and 18% of the properties on the MLS.

We have seen Maui’s tourism numbers increase steadily this year.  That, and perhaps some of that increased consumer confidence that’s been reported, is finally finding itself floating toward Maui.  Maybe some “would be” buyers have decided that they had better get something good while there is still something good to get.

Those looking to find something good and watching the MLS may have noticed that inventory is stabilizing or perhaps declining.  In November of 2010 there were 1,347 condos on the market.  At the beginning of this December inventory was down to 1,128.  Although, at the current rate of sales we still have enough condos to last more than 14 months.

Area Highlights

There were a few peaks and valleys.  The Maalaea area had 4 sales in November, which is four more than the number sold in October and more than 5 times the sales volume of November 2010 for that area. The median sales price in Maalaea has also seen an 81% increase compared to this time last year.

Kaanapali made a comeback in November, with 9 sales after only 2 sales in October. Although November’s sales volume is up almost 5 times from October, they are down 9% on sales volume from November 2010. The median sales price is up 76% from October, but down 9% November last year.

Napili/Kahana/Honokowai area sales were also down – almost 24% from the number of sales in October. The median sales price was also down – almost 36% from October and almost 25% from last year. The total sales dollar volume for the area ended down 49% from October.

Although it had only 5 sales in November compared to 8 in October, Wailea had a total sales dollar volume increase of almost 14% and ended up being 32% more than the sales dollar volume of November 2010. The median sales price was $1,999,000 – over 2.5 times last month’s median sales price and up almost two times from November 2010.  

Kapalua had no sales. 

The south side was brighter.  Kihei, Maalaea, and Wailea/Makena were the only areas to have an increase in median sales price as compared to November 2010.     

Highs and Lows

Continuing the trend, there was more of the same shocking low sales prices as last month.  A 2^nd floor 1/1 foreclosure leasehold unit at Napili Ridge on Hui Road in Napili sold for only $15,100, probably due to the fact the unit needed flooring and was mid-remodel, and there is that whole lease issue hanging out there. 

There were a total of 10 condos on Maui that sold for less than $100,000. Some were recently updated or remodeled, and a couple had some ocean views.  All of those units were REO sales.

On the higher end of the condo sales prices, there were 6 that sold for over $1,000,000 in November. They included a $1,134,900 sale at Honua Kai-Konea in Kaanapali for a 1230 square foot 2/2 condo; another 2/2 unit at Honua Kai – Hoku Lani, for $1,199,900; a 2/2, 1346 square foot  unit at Wailea Elua II for $1,750,000; a 3/3.5 unit at Hoolei in Wailea; a 2/2 unit at Polo Beach Club in Makena;  and a 3/3 penthouse unit at Wailea Beach Villas for $3,600,000.

Potts’ Picks

In case you missed it last month, I’m still touting the REO Golf Villa in Kapalua.  It is a 2 bedroom 2 bath fully furnished, updated and it’s priced at only $534,900, no wait, they just lowered it to $474,500.  In the MLS it’s 348805.

For more information on these or any other units send an email with your request to info@aloharealtygroup.com or, visit our website at www.aloharealtygroup.com.

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With single family homes apparently settling in to a groove

The roller coaster ride may be over

It’s way too early to call that stability; single family home sales continue on an upward swing with a 10% increase over 2010.

Prices aren’t rising like the number of sales, but the trend does seem to be flat. Last month we reported that the median price was down 5% for the year. There was little change this month.  We’ll see if that carries through to the end of the year.

Flat prices are a little surprising considering the number distressed properties that sold last month. They represented 41% of the properties sold and 27% of those on the MLS. 

Area Highlights

On Maui’s west side, Lahaina Town had 8 sales – about 167% of October’s number and seven times the number of sales in November 2010.  Both the median and average selling price is up year-to-date in Lahaina.

Kapalua had their first sale in 3 months – which happens to be the highest sale price for a single family home this month. Yet, year-to-date, one more home has been sold there this year than last year at this time and the average selling price is up 27%.

Other west Maui areas like Kaanapali and Napili/Kahana/Honokowai, seem to have slowed in recent months – having fewer sales in each area than last month.

The trend of rising median sales prices in the upcountry areas of Maui came to an end this month. Sales dollar volume in Haiku went down 50% from October and the number of sales fell 30% from October. Median sales prices fell 7% compared to October.

Makawao/Olinda/Haliimaile area sales volume declined 93% from October and fell 96% from November last year. The number of sales is down 83% from October. Median sales prices fell 37% compared to October.  

Kula/Ulupalakua/Kanaio area sales volume came in at 65% of October’s figures and 64% of November 2010 sales volume. The number of sales in the area went down 86% compared to October; however, the median sales price went up 36% from October and up 21% from November 2010.

Maui’s Central Area (Kahului/Wailuku) has had a small decline across the board compared to October sales. The number of sales went down 5%, sales dollar volume went down 22%, and the median sales price went down 11%. These changes were almost identical when compared to November 2010 sales.  

There were 18 sales in Kihei, more than double October’s number. That increase equaled a 125% improvement from October’s sales and a 13% increase over October’s median sales price.

Wailea had only 3 sales, but the median selling price was over $1,000,000.

Highs & Lows

The lowest selling price for a home in Maui was a 2 bedroom, 1 bathroom home in the Rice Camp area of Haiku that closed for $95,000.  It was bank owned, an REO that needs a little work.

The other end of the spectrum is a 3 bedroom, 3.5 bathroom, panoramic ocean view estate in the Pineapple Hill area of Kapalua.  This breathtaking, 3,060 square foot home sold for $3 million.

Potts’ Picks

One of the best deals on a luxury property I’ve seen in a long time is in the newer Honolua Ridge area of Kapalua.  This elegant new 3,563 square foot 4 bedroom, 4 bath main home sits on 6 acres overlooking grand ocean views.  The property also has a 1,000 square foot “cottage” and is priced at $3,995,000.  MLS #348424.

For more information send an email with your request to info@alohapotts.com, or see all of the listings on Maui at www.aloharealtygroup.com.

Be sure to visit us online at Aloha Realty Group.com.

If you are coming to Maui this year, let us know, we would love to say hello.

A hui ho!

View past MREA Issues:

October 2011, Mid-Year 2011, 2010 Wrap Up, August 2010, July 2010, 2009 Wrap Up, September 2009, June 2009, May 2009, Q1 2009, 2008 Wrap Up, November 2008, September 2008, August 2008

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaRealtyGroup.com.  If you can’t find what you’re looking for there, send us an email to lee@alohapotts.com, and we’ll do our best to get an answer for you.  As we get more requests for information, we’ll add new sections to the website, newsletter or both.

About The Aloha Potts Team

Aloha Potts is a team comprised of L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA.  We are business people, and we treat our clients with the same care and service attitude that we would like to receive when we do business.  We are in business for pleasure and profit.  We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit).  Real estate can be highly speculative, and profits are never guaranteed.  So if you are buying property in Maui, it’s a good idea to surround yourself with a professional team.

Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization.  Lee and Barbara are both licensed under Aloha Realty Group. 

Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back when both Steve’s were there (Jobs and Woz).  She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.